'Trading is a process of observing the market's action until such a time you can find and form trading ideas and get involved.'**

Friday, December 17, 2010

Observe & Trade




As I posted earlier that QQQQ (NQ in e-mini) has the probability to breakout.

And I was right!

As I mentioned, it formed a "W" pattern and it consolidates after (in between 54.56 - 54.58).

This is the kind of pattern that is a sure fire to trade.
You can enter at 54.56 and exit at 54.66 for a gain of just a mere +$0.10 per share.

But if you trade this in the e-minis, you can enter at 2222.00 and can exit at 2226.00 for a gain of 4 points.

NQ moves in the increments of 0.50 points at $10.00.

So for a gain of 4 points, that is +$80.00 for a contract.

Not bad for 30 minute "job"!